HomeMy WebLinkAboutRES #205RESOLUTION NO. ~ ~-
ON MOTION of Councilman Zimmer, seconded by Councilman Bruce,
the following Resolution was adopted by the City Council of the City of Sebastian,
Florida in regular session on Monday the 8th day of June, 1964.
WHEREAS, heretofore by Ordinance No. Z03, the City of Sebastian,
Florida, acting by and through its City Council did grant unto GENERAL
DEVELOPMENT UTILITIES, INC., ("Utilities"), a Florida Corporation, a
water system franchise encompassing an area within the City of Sebastian
more particularly described in said Franchise Ordinance; and
WHEREAS, under the terms of said Franchise Ordinance, Utilities
is prohibited from selling or transferring its plant and water system to another
or transferring any rights thereunder without the approval of the City Council;
and
WHEREAS, the said plant and water system is presently encumbered
by an existing first mortgage btm Utilities desires to refinance this mortgage
with institutional lenders for the purpose, inter alia, of extending the maturity
date of its indebtedness; and
WHEREAS, the said prohibition might be construed to constitute a
restriction on the right of Utilities to mortgage or otherwise encumber its
plant and water system by trust deed, mortgage, or other security instruments
by reason of the fact that such trust deed, mortgage or other security in-
strument would contain standard default provisions, including a provision for
sale by a trustee or for the benefit of any holder of the indebtedness represented
thereby; and
WHEREAS, as an incident to such refinancing, the institutional
lenders require that the City Council for the City of Sebastian, Florida, con-
firm that the Franchise Ordinance is valid and presently in full force and effect,
and that said City Council consent to the refinancing of the indebtedness to be
secured by mortgage and other security instruments encumbering the plant and
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system owned and operated by the franchise holder in the City of Sebastian
under the terms of the aforesaid Franchise Ordinance:
NOW, THEREFORE, BE IT RESOLVED by the City Council of
the City of Sebastian, Florida as follows:
That the Franchise Ordinance No. 203 granting a water franchise
to GENERAL DEVELOPMENT UTILITIES, INC. , ("Utilities"), is valid and
presently in full force and effect; and
That the City Council of the City of Sebastian, Florida does hereby
grant its consent to refinancing of the indebtedness from time to time encumber-
ing the plant and water system owned and operated by Utilities in the City of
Sebastian; and expressly consents to the incorporation in such trust deed,
mortgage or other security instruments which Utilities may be required to
execute for the purpose of securing such indebtedness, standard default pro-
visions which may include, but not necessarily be limited to, a power of sale
by a trustee or for the benefit of any holder of the indebtedness represented
thereby. Provided, however, that in the event of default and exercise of the
said power of sale, any transferee, assignee or successor in interest to Utili~
ties, or the institutional lenders advancing the funds incident to refinancing
referred to herein, or purchaser at such sale, shall be obligated to assume
and perform all those duties and functions imposed upon Utilities under the
terms thereof.
Adopted this 8th day of June, 1964.
CITY COUNCIL OF CITY OF SEBASTIAN